Diy Credit Repair – Stay Clear Of “shady” Credit Repair Businesses
The Federal Trade Commission warns that thousands of consumers may fall victim to credit repair scams every year. The Better Business Bureau reports that credit repair fraud is more prevalent than ever, claiming countless victims. credit repair companies play on your fears that you can’t repair your own credit, but this is a false perception. It is absolutely possible to employ good do it your self credit repair practices and raise your credit score through responsible consumer habits. Don’t become victim to a credit repair scam. If you don’t know how to spot a credit repair scam, look out for these warning signs:
Claims to erase negative information.
If you see a credit repair company that claims to be able to erase negative information from your credit report, it’s a scam. You can dispute errors on your credit report but you cannot remove negative information if it is accurate. There are certain circumstances where you can get negative information removed if a creditor or credit reporting agency is reporting it incorrectly, but in general - negative information, when accurate, is there to stay. Avoid companies that claim to provide this service.
Requests for a monthly fee.
If a credit repair agency charges you a low monthly fee for ‘working’ on your credit repair, steer clear of said company. The fees charged by these companies are so insignificant that they cover practically nothing. Think about a lawyer’s hourly rate. Most attorneys charge anywhere from $100-$300 per hour for their services. If you’re paying an attorney (or a credit repair agency) $25 per month, that buys you 15 minutes per month - or less - to work on repairing your credit report. You’re much better served paying an extra $25 per month on your credit card bills and repairing your own credit.
Unsolicited emails.
It’s a good business practice to ignore an entity that contacts you through an unsolicited email. There are thousands of ways to perpetrate email fraud, and a legitimate-seeming company could literally vanish overnight. Never give out sensitive personal information to people who contact you via email and claim that they can repair your credit. If you give information like your date of birth, address and social security number, you’re exposing yourself to identity theft. Likewise, never give out bank account information - even to make a payment - unless you’re on a secured connection with a trusted website.
Repair your own credit; take the power into your own hands.
It’s unfortunate that anyone would prey on victims of credit problems, but it’s a vulnerable demographic. People are intimidated by the thought of do it your self credit repair, for the fear of doing something wrong. It’s better to do it yourself properly than to give someone else the power to influence your credit - for good or ill. Don’t relinquish control of your most important asset - your credit.
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